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Annabelle forms a corporation in which she is the sole shareholder. She transfers $ 2 0 , 0 0 0 cash plus land with a
Annabelle forms a corporation in which she is the sole shareholder. She transfers $ cash plus land with a $ adjusted basis and a $ FMV in
exchange for all the stock of the corporation. The corporation assumes the $ mortgage on the land. What is her basis in the stock, and what is the gain she
must report if any
Multiple Choice
Gain of $; stock basis is $
No gain; stock basis is $
Gain of $; stock basis is zero.
No gain; stock basis is $
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